Tesco's failure in America Essay Example | Topics and Well Written Essays - 3000 words

Tesco's failure in America - Essay Example Reasons for the Failure Market Positioning Positioning may be defined as the process of creating an image in the minds of the target market for the brand (Ferrell, O. et al., 2000). This positioning can be functional, symbolic or experiential. Functional positioning tries to solve problems and provides benefits to the customers (e.g. - Wall mart’s everyday low prices); symbolic positioning creates affective fulfilment (e.g. - Apple’s products give an ego boost to owners) and experiential positioning provides both rational and emotional fulfilment (Lao, 2013). TESCO entered USA through Fast and Easy (F&E) stores. The F&E stores were positioned between the discount supermarkets and the upscale organic stores. F&E stores were labelled as stores which will provide ‘healthy’ food at low prices. Thus TESCO tried to position itself between Wal-Mart and Trader Joe’s (Sonne & Evans, 2012). The positioning of F&E was neither functional nor symbolic. Wal-Mart succeeds due to its promise of everyday low prices whereas Trader Joe’s provides snob value to the rich and entices them to be different and buy organic food. Trader Joe is clearly positioning it’s product for the rich and Wal-Mart for the mass market. TESCO’s positioning was not enticing to either of the 2 segments. There was no market which wanted health organic food products at low prices in USA. Only 3 % of American population follows the healthy lifestyle unlike in UK and Europe where this trend is the norm (Sonne & Evans, 2012). ... Trader Joe is clearly positioning it’s product for the rich and Wal-Mart for the mass market. TESCO’s positioning was not enticing to either of the 2 segments. There was no market which wanted health organic food products at low prices in USA. Only 3 % of American population follows the healthy lifestyle unlike in UK and Europe where this trend is the norm (Sonne & Evans, 2012). Thus positioning itself as a store with a healthy image in a nation which loves fast food and soda was the biggest mistake committed by TESCO. This was one of the main reasons for their failure in USA. Customer Relationship TESCO had a troubled relationship with USA customers. This was because it ignored the cultural differences between USA and UK.TESCO looked more like a coloniser who stuck on to its customs and culture rather than adopt the culture of the new country. Some of the mistakes leading to a troubled customer relationship were – Low Brand Recognition USA unlike Europe is obses sed with brands. Americans are willing to spend more money if they consider the brand good and worthwhile (Piercy, 2012). Fresh & Easy was an unknown brand to them. The name TESCO was not associated with F&E stores in any way. TESCO focused its money and resources in opening more stores rather than advertisements on brand building. The Fresh & Easy stores were also highly dependent on private labels in a market which likes to see and buy branded products. This was a big mistake in a country which likes to buy branded products. Lack of Service In order to keep the costs low, F&E stores had adopted the self check out system. The staffs in F & E stores were also kept

Study of management Essay Example | Topics and Well Written Essays - 250 words

Study of management - Essay Example Health insurers don’t need applicants to undergo a genetic test. The article from Forbes magazine (2008) states that the former president George Bush signed the Genetic Information Non-discrimination Act (GINA) into law to prevent discrimination of people who receive genetic test by their employers. Weiss (2008) states that the genetic discrimination has its consequences for example if an employer used genetic test to access the cost of insurance to an employee it would discourage the rest of the employees from seeking the test (P. 224). In reference to the article, management theory that is for or against the article is libertarian theory. This means if an employer or any other equal employee is for the theory they are against genetic discrimination. If they are against the theory, they support genetic discrimination. The article from Forbes magazine has taught me that it is unethical and illegal for an employer to discriminate potential employees based on their genetic characteristics for example, color of skin gender or disability which does not affect the work performance. Employers too are to keep the confidential the medical information of their employees thus they may find themselves on the risk of legal charges. The article teaches about practicing business ethically by not discriminating potential employees just because they are genetically disordered. Every employee should be giving an equal chance to display their professionalism in an organization. The government has clearly stated that it’s illegal to judge the capability of someone using their genetic information. Moreover, the government also has banned the use of genetic testing to deny both health insurance and employment opportunities. Health insurers might not need one to undergo a genetic test, but the customer can volun teer (Analytica, 2008). In conclusion, I aim to apply what I have learnt in my practice, by not judging other employees according to their genetic disorder, rather than